If you are looking for essential FX trading education, you need to learn from the best and in this article we will look at a group of novice traders who, learned to trade in just a couple of weeks and then went on to make hundreds of millions of dollars, in one of the most famous trading experiments of all time.
Richard Dennis was a multi millionaire trader and wanted to prove that anyone had the potential to learn to trade successfully, so he decided to prove it.
He put an advert in the paper advertising for people who wanted to learn trading and he gathered a broad cross section of people including – an actor, a security guard, a boy just out of high school, a lady auditor and a professional card player and many others and taught them to trade in 2 weeks.
He set them up with trading accounts of a 100,000 dollars each and let them trade and they made several hundred million dollars. The Turtle experiment as it as so called became one of the most famous of all time and proved anyone could be taught to win at trading.
Dennis obviously proved his point but you are probably thinking – he taught them in 2 weeks to trade like pro’s yet 95% of traders lose money, how did he do do it?
Here are the key points on how Dennis did it which you can use to achieve currency trading success and some of the points may surprise you.
– The system taught was incredibly simple and was simply a breakout trading system which looked to trade long term trends. Despite what many people say, simple systems work best and always will because they are more robust with fewer elements to break than complex ones.
– The system lost far more trades than it won (in fact most systems that make big gains do) but as the pro traders know, its not the ratio of trades that win which is important, its the profit v loss per trade. Many of the world’s top systems win only 30% of the time but make huge gains because there money management is so good.
– All the traders, when asked about the hardest part of trading said, learning the system was the easy part of their education, getting the right mindset to cut losses quickly and wait for the big profitable trades was hard. They did it but trading with discipline still remains hard for most traders.
The way to achieve Forex trading success is the same as it’s always been and that’s to use a simple system but have the mindset to apply it with discipline and keep losses small.
Anyone can learn a system that can win but most traders fail to make it win because they are obsessed with wanting to be right all the time but if you want to make money at Forex trading that’s not possible – you need to be humble and lose but keep your losses small and don’t worry, taking losses is fine, because you if you keep them small the big trends will come around again and you can get into them and follow them for huge profits.
You may not become as rich as the traders above but what will say is if you learn how they achieved success and you get a simple trading system and make the choice to trade it with discipline – you can make a great second income in around 30 minutes a day.